Rumor Has It Amazon Is Opening Hundreds of Brick-and-Mortar Stores

Before branching out to offer everything from groceries to original TV series, Amazon got its start as an online bookstore. Now the retail giant is planning to add to its services by opening up hundreds of physical bookstores, according to one mall CEO.

Sandeep Mathrani, chief executive of mall operator General Growth Properties Inc., said on an earnings call with analysts, "You've got Amazon opening brick-and-mortar bookstores and their goal is to open, as I understand, 300 to 400."

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Though it isn't clear where Mathrani received his store figures, there is speculation that he could have spoken with Amazon real-estate executives about future plans. Spokesmen for Amazon and General Growth Properties declined to comment.

Amazon opened its first physical bookstore near its headquarters in Seattle in November 2015, selling books and Amazon Kindle and Fire devices. The bookstore carries the same prices as Amazon's online store, and has around 5,000 titles at any one time.

The plan would strike a competitive blow to Barnes & Noble, the largest U.S. bookstore chain, which operates 640 stores around the U.S.

Mathrani suggests the possible motivation for Amazon opening these stores surrounds returns. The CEO said 38% of online purchases for soft goods, like clothing and paper products, are returned to brick-and-mortar locations.